case every body give urs advice

Tax queries 449 views 4 replies

hi  all

if an assessee ia a trust doing a social & medical welfare work by an hospital,with its several branch in india

an one of its director or we can say that the head of that hospital, is an authorised person to due all the transaction & have an authority to sign the voucher, but he does not get any remunaration from the hospital it gets its remunaration from its HO,but now the Additional Commisioner of IT is saying that this person is not properly authoried to do the above said work, & he is disallowed all the voucher & books of accounts on the ground that the director is not getting remunaration from its local barcnh office.

 

now what to do, how can i satisified the AC

Replies (4)
There are many trust where people work on honorarium basis and there has never been an argument of this nature... In fact IPL Mr. Lalit Mdoi and all other council members except cricketers don't even get a single rupee.. Expenses all allowed

Thnks nicky

some one more for advice

Th Income Tax Act 1961 is nothing to do with management policy decision regarding helm of affairs or otherwise. As the director getting remuneration HO i.e. well wihin the scope of allowance of expenditure and the director have his own taxable income question of disallowance never arise at all.

Its on the organisation to decide about the level of authority, ITO is not at all interested in tht stuff. Ask the ITO to give any circular or anything stating that it is not allowed in IT Act.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register